Section 179 Commercial Vehicles

Today TaxMama hears from Jared in the TaxQuips Forum,who is confused. “What are the guidelines for writing off a new commercial van?  I need a big deduction. Can I write off the whole thing? I have been to many sites – and even the IRS site is different. I thought it was $25,000 last month when I looked; now it’s saying $3,000.”

Dear Jared,

It’s pretty simple really. But I can see why you’re confused.

You are entitled to the $25,000 Sec 179 limit only with vehicles with a gross weight over 6,000 pounds (unladen, i.e. without cargo) – with certain exceptions.

The lower, $3,160 limit is with light trucks, under 6,000 pounds gross weight.

However, when a truck’s gross weight exceeds 14,000 pounds, you may use Sec 179 up to its limit of $500,000 (for 2010 and 2011), as long as your total vehicle and equipment purchases are under $2 million.

Now isn’t that more than you ever wanted to know?

And remember, you can find answers to all kinds of questions about depreciation and other tax issues, free. Where? Where else? At www.TaxMama.com.

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